Gold futures gain further as govt raises import duty
Gold maintained its rising streak with prices quoting above psychological Rs 29,000 per ten gram in futures trade Tuesday after the government raised import duty on the precious metal.
New Delhi: Gold maintained its rising streak with prices quoting above psychological Rs 29,000 per ten gram in futures trade Tuesday after the government raised import duty on the precious metal.
Besides, covering up of short positions by speculators and a firming trend in the spot markets on firm demand for the upcoming festive and marriage season also influenced gold futures prices.
At the Multi Commodity Exchange, the metal prices for delivery in the most-active October rallied by Rs 410, or 1.37 percent, to Rs 29,333 per 10 gm, in a turnover of 20,786 lots.
On the similar lines, gold for delivery in far-month December contracts traded Rs 361, or 1.25 percent higher at Rs 29,153 per ten gram in a business volume of 1,625 lots.
In the national capital, gold prices spurted by Rs 565 to trade at four-month high of Rs 29,825 per ten gram today on the back of increased buying ahead of festivals like Rakshabandhan.
Analysts said besides strong demand at domestic spot markets for the upcoming festive and marrige season, the government raising import duty from 8 percent to 10 percent with a view to arrest the declining value of rupee and contain the fiscal deficit to 3.7 percent of the GDP, helped gold prices to trade above Rs 29,000 per 10 gram level at futures trade.
"Government's decision to raise custom duty to 10 percent from 8 percent and weakening rupee influenced gold prices", said Rakesh Anand, an analyst.
They said, however, a weak trend in the global market capped the gains.
Globally, gold, however, failed to maintain higher levels on fears that recent rally in gold prices may hurt demand and slipped to trade 0.74 percent down at USD 1,327.40 an ounce in London.